Market Expansion Reshapes Industry Landscape, Boosts Competitiveness
Market expansion can change the structure of industries, affecting their performance. The impact of market expansion on market structure depends on entry barriers. Lower entry barriers lead to more competition, while higher barriers benefit larger companies. Horizontal market expansion is easier than vertical expansion but can lead to issues like resource wastage. A study on producer services from 2003 to 2009 confirmed these findings. Overall, market expansion can boost industry competitiveness and efficiency, benefiting both businesses and society.